It’s important that HR departments consider the reasons behind a raise, and whether the employee is question deserves it, before deciding to give one. Raises are an important part of compensating valued employees. Here are some examples of times you may want to consider a pay boost.
When the employee performs well. If an employee has exhibited a high level of performance since their last review, it may be time to give them a raise. Raises can be an important part of ensuring that workers feel valued and can be a step toward employee retention.
When changing circumstances require accommodation. There may come a time when your office is moved to a new location. This may put some employees in a position where their commute is extended. This could mean they have to expend additional time and money to get to work and it may be appropriate to provide reimbursement or give a raise to help offset these costs.
When the employee has completed extra credentials. In the event that an employee obtains a degree like an MBA, it may be time to raise their salary to account for the value gained through new skills.
When they have another job offer. Retaining talent is a top priority for HR. But sometimes an employee will receive another job offer that pays better than their current position. In cases like this, providing an increase in compensation may encourage the employee to stay, reducing the chances of having to expend the resources to find and train a replacement.
Deciding when to provide a raise requires careful consideration and attention to details about employee performance and history. HR software solutions helps keep an accurate record of employee information that helps in decision making.